Texas Rep. Michael Conaway to help lead House ethics probe of Rep. Berkley

Texas Congressional Delegation at work

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Texas Republican Michael Conaway is one of two representatives leading a House ethics probe into Representative Shelley Berkley, the Nevada Democrat who has been accused of using her office to aid her husband’s medical practice.

The House Ethics Committee Chairman Jo Bonner of Alabama and ranking member Linda Sanchez of California released a statement Monday that the committee voted unanimously June 29 to create a “special investigative subcommittee” to look into the allegations, Politico reports.

That subcommittee will be chaired by Conaway and Rep. Donna Edwards, D- Md., along with Reps. Bob Latta, R-Ohio, and Adam Schiff, D-Calif., both of whom will also work on the investigative subcommittee.

Rep. Mike Conaway (AP photo)

Conaway, a fourth-term Republican from Midland, is an accountant skilled in the field of forensic accounting, the unraveling of complex monetary transactions. His expertise was used by national Republicans several years ago after an employee stole money from a GOP campaign committee.

The case takes on added weight given Berkley’s current political standing — she’s challenging Republican Dean Heller in a Nevada Senate race, one that’s currently close in the polls and stands to carry national weight. Democrats view Nevada as one of a mere handful of states where they have the potential to win GOP Senate seats (along with Maine, New Hampshire and Arizona).

A Berkley loss would add pressure on Senate Democrats to protect endangered incumbents in Missouri, Montana, Ohio and Florida, as well as upping the ante in open-seat contests in Virginia, North Dakota and Arizona.

The allegations involving Berkley first surfaced last September, when The New York Times reported that the Nevada representative used her office to help her husband’s kidney transplant practice. The Las Vegas-based office at the University Medical Center was facing federal shutdown in 2008, after concerns rose about the failure rate among kidney recipients. After Berkley intervened, the practice’s contract was extended.

Her actions “were among a series over the last five years in which she pushed legislation or twisted the arms of federal regulators to pursue an agenda that is aligned with the business interests of her husband, Dr. Larry Lehrner,” The Times reported. Berkley denied a conflict of interest.

The independent watchdog Office of Congressional Ethics called for a probe, leading the Ethics Committee to decide to create the subcommittee that will investigate Berkeley’s actions. Once the subcommittee concludes its investigation, it will decide whether the Nevada Democrat violated any House rules and make a recommendation for further action.

It’s a decision that aids the GOP in its campaign against Berkley, granting them license to portray the Democrat as a political figure under investigation with a role in shady dealings. Adding to the evidence against Berkley is a letter she wrote to the then-head of the Ways and Means subcommittee that oversees Medicare, Rep. Pete Stark, D-Calif. The letter was “urging him to use caution when revisiting compensation for dialysis providers,” the National Journal Daily reported, and was written on the same day Berkley “received a number of campaign contributions from medical companies that deal with kidney dialysis.”

Berkley’s campaign manager, Jessica Mackler, released a statement to Politico that tried to downplay the decision to create a subcommittee as a setback to Berkley’s political race.

“We are pleased with the committee’s decision to conduct a full and fair investigation, which will ensure all the facts are reviewed. We are confident that ultimately it will be clear that Congresswoman Berkley’s one and only concern was for the health and well-being of Nevada’s patients,” Mackler said. “That’s why she joined then Republican Congressman Dean Heller to prevent Nevada’s only kidney transplant program from being shut down by Washington bureaucrats. With more than 200 Nevada patients desperately waiting for a lifesaving kidney transplant, it would have been irresponsible of her not to work with the state’s entire congressional delegation to protect the program.”

Still, speaking on condition of anonymity, a top Senate Democratic strategist told Politico the damage may too much for Berkely to bounce back from.

“This is going to make it real, real tough,” the strategist told Politico. “I am not sure she can overcome it.”